- The DeFi compliance tool is made possible via decentralized Oracle network chainlink
- With the launch of the chainlink node, Cipher Trace gets a compliance Oracle solution to DeFi
Cipher Trace has launched a DeFi tool to help DeFi protocols and DEX in a big way. The tool aims to follow the OFAC rules. The DeFi tool is using the decentralized Oracle network chainlink so the tool can communicate with other DeFi protocols
As per the foreign policy objectives, the US has restricted its companies from doing business with certain countries and their citizens. And if there is an Iranian crypto company, then there is no chance to be on Coinbase.
But Decentralized Exchanges and DeFi platforms also operate within restricted territories. They offer softer landings for human beings in international countries subject to US sanctions. But they cannot do so for a more extended period. There is a DeFi tool named DeFi Compli launched today by Cypher Trace, a blockchain tracking firm dedicated to DeFi protocols and decentralized exchanges to ensure they are not taking money from countries and individuals on the Office of Foreign Assets Control’s list.
OFAC is a US Treasury Department unit that enforces sanctions against other countries and individuals, often for drug smuggling, terrorism, or nuclear weapon proliferation. The DeFi compliance tool is made possible via decentralized Oracle network chainlink by running a node on that network. Cipher Trace uses the collected data to communicate with other DeFi protocols.
With the launch of the chainlink node, Cipher Trace gets a compliance Oracle solution to DeFi. This will also integrate compliance data as simple as possible for DEX and other protocols. Cipher Trace believes that there is a demand for such a tool. In Decentralized Finance, blockchain technology can do away with banks and brokerage to help peer-to-peer trading and lending. But government rules and regulations can often become a source of friction.
There is another exchange named BitMex, a centralized crypto derivatives exchange. The exchange’s founders have been charged with violating the bank secrecy act and failed to ensure compliance with anti-money laundering laws (AML).
But this new DeFi compli that has been launched is not of much help for DEXs with AML yet. However, the firm will soon launch the tools later down the line. The tool will help exchanges prevent the most difficult things as well.
